According to new research from Citi, if lawmakers can’t stop their squabbling over the "fiscal cliff" and get their acts together – the sell-off in the stock market could be horrendous.
Citi research suggests that investors could be looking at as much as a 20% sell-off if the Dems and GOP can't find common ground on the fiscal cliff, or the confluence of tax hikes and spending cuts coming at the beginning of the year.
That means, if the S&P trades 1500 on Dec. 31st, it could tumble a whopping 300 points in early January!
And the Dow could drop over 2,000 points.
AndCiti’s research suggests the pain won’t be limited to equity investors. They also say oil prices would drop by $20 a barrel and unemployment would spike up to at least 9.5% through 2014.